If you conduct a quick internet query on “dealing with talent shortages,” you will get thousands of results. As global talent shortage statistics show, finding good employees is a top concern for many employers due to the Great Resignation.
It seems that everyone has an opinion on how to address the talent shortage. While some of these proposed solutions have merit, many overlook the importance of “organizational agility.”
Below, we highlight some notable — and concerning — global talent shortage statistics. Next, we discuss what an agile organization is. Then we look at why an agile approach better positions a company to address the talent shortage. Finally, we discuss some strategies you can use to make your organization more agile.
Eye-Opening Global Talent Shortage Statistics
If you have taken the time to brush up on the latest talent shortage statistics, you know that the global outlook is not great. According to recent data, approximately 85 million jobs worldwide will be unfilled by 2030.
The bad news does not end there. A 2021 Forbes article revealed that 69% of employers struggle to fill critical vacancies. The author also noted that talent shortages have “more than tripled” in the last decade, and the shortfall will cost businesses trillions of dollars in opportunity.
While we could list dozens of similarly bleak talent shortage statistics, these facts illustrate the severity of the issue. So, what can be done to overcome the talent shortage, and how can businesses maintain continuity? While there is no single answer, increasing organizational agility should be a top priority.
What Is an Agile Organization?
“Organizational agility” is a wildly popular topic among global business leaders. While there is no universal definition, almost everyone agrees that it means making businesses more efficient, flexible, accountable, and transparent. Such an organization is better positioned to endure unexpected challenges and can rapidly adapt to changing market conditions. So how does all of that relate to hiring and talent shortages?
Agile organizations have well-defined operational structures that are clear but not rigid. They do not rely on antiquated, inefficient, and tedious hiring processes. Instead, agile organizations constantly explore ways to improve hiring and retention protocols so they can remain competitive amid this unprecedented talent shortage.
Put simply, agile organizations hire faster, screen better, and retain talent at higher rates than companies with sluggish HR protocols. Agile organizations also upskill existing staff to improve retention rates, nurture in-house talent, and fill critical vacancies from within.
How to Make Your Organization More Agile
You are correct if you think agile organizations have a distinct edge during the current talent shortage. Your organization can gain this same advantage by purposefully pursuing a more agile hiring and training structure.
The first step is to refine the way you screen candidates. Streamlining your screening process will allow you to hire faster and reduce the risk of making bad hires. This refinement will lead to less turnover, reduced hiring costs, and fewer staffing “crises.”
You should also implement an employee training program that focuses on cross-training, upskilling staff, and developing leadership abilities.
Cross-training boosts your agility because your staff can transition between various tasks and roles based on your needs at any given time. Having this degree of flexibility increases your resiliency when dealing with staffing shortages and can buy you much-needed time while you strive to fill vacancies.
Upskilling refers to hiring candidates who may not necessarily possess all the talents you need but have the right foundation to succeed in your organization. In short, you can teach them the things they do not know as long as they possess the right behavioral attributes.
The Role of Skills Testing in Increasing Organizational Agility
Implementing skills test will increase your company’s agility. It will improve the accuracy and efficiency with which you screen candidates. Your hiring team can gain valuable insights into each candidate’s skills and abilities and leverage the information to make data-driven hiring decisions.
Skills tests are also helpful when upskilling and cross-training your team. You can teach your staff members valuable skills so they can fulfill multiple roles within your company.
The biggest value skills tests offer is they are versatile. You can use job-specific skills tests to measure technical abilities and incorporate generalized assessments such as Data Checking, Multitasking Simulation, and Reasoning Ability.
Do you want to learn how skills tests can help you increase organizational agility so you do not need to be concerned about talent shortage statistics? Contact us to request a demo.